Bitcoin Warnings Issued by Analytics Company Glassnode: Retail Involvement Decreasing, Demand Dwindling
Hey there! Let's dive into the latest crypto happenings, specifically focusing on Bitcoin. According to Glassnode, the Bitcoin market is currently experiencing a "cooling phase" after the flagship crypto's price failed to maintain levels above $111,000. This quiet period is due to a decrease in retail participation and fewer aggressive buy-ins.
The Spot Cumulative Volume Delta (CVD), a technical indicator showing the buying and selling pressure in the market in real-time, has turned bearish, implying that short-term traders are now trimming their risk. Despite a significant rise in inflows to spot Bitcoin exchange-traded funds (ETFs), indicating renewed institutional demand, organic on-chain activity remains subdued.
This subdued activity can be observed through declining transaction fees, stagnant growth in active addresses, and only moderate transfer volumes, suggesting more passive accumulation rather than active trading. Notably, approximately 97% of the Bitcoin supply is currently held at a profit, leaving room for a possible sell-off if demand remains weak.
In conclusion, while institutional interest remains strong, retail participation is fading, and trading activity is cooling down. Here's to hoping for renewed demand from both retail and institutional investors to overcome the current cooling momentum!
In other recent news:
- Meta Earth Network 2.0 pioneers Web3 innovation with rewards and global events.
- Perceptron Network merges with BlockMesh, creating the first end-to-end decentralized AI data infrastructure.
- Bubblemaps integrates with TON, enhancing transparency in Telegram's native blockchain ecosystem.
- NATIX Network launches DePAI initiative, merging DePIN infrastructure with decentralized AI.
- Falcon Finance launches the pilot season of the Falcon Miles Points Program to reward ecosystem participants.
Stay tuned for more insights, and don't forget to check out our platform for the latest news, market trends, and blockchain advancements! Join our Telegram chat, Like us on Facebook, and follow us on Twitter for real-time updates.
Note: This analysis is not financial advice. Investors should conduct thorough research before making any high-risk investments in Bitcoin, cryptocurrencies, or digital assets. The Daily Hodl participates in affiliate marketing.
Source: The Daily Hodl
While the Bitcoin market is in a cooling phase due to decreased retail participation and less aggressive buy-ins, there's ongoing innovation in the altcoin sector. For instance, Meta Earth Network 2.0 is pioneering Web3 innovation with rewards and global events, while Falcon Finance has launched the Falcon Miles Points Program to reward ecosystem participants. Although institutional interest in Bitcoin remains strong, it's crucial for investors to carefully consider the current market trends before crypto investments, given the risks involved.
